what did Michael Porter suggest the 5 forces of competitive intensity are? - CORRECT
ANSWER -1. The threat of new entrants
2. The bargaining power of buyers
3. The threat of substitute products
4. The bargaining power of suppliers
5. The rivalry that exists among existing firms
What does strategic planning require? - CORRECT ANSWER --a new level of
communication among family members, between the family and management, and
between management and the board
-ample financial and market information
-building on the diffrerent persepectives and the predictable disagreemens across
generations
when does a zer-sum dynamic exist within a family? - CORRECT ANSWER -when
there is no business growth
what are the effects of a zero-sum dynamic? - CORRECT ANSWER --when the pie is
not getting larger, family shareholders fight over size of their slices
-the zero-sum dynamic is a precursor to business failure and family disharmony
what are the sources of value? - CORRECT ANSWER --financial resources
-physical assets
-the product and its price and performance
-organizational capabilities
-customer-supplier integration
-brand equity
-the family-business relationship
are financial resources likely to be a source of value for a unique business model? -
CORRECT ANSWER -no
why are organizational capabilities important? - CORRECT ANSWER -companies with
unique organizational capabilities are capable of differentiating themselves and creating
value in ways that others find difficult to replicate
what matters to a customer-oriented company? - CORRECT ANSWER -the outcome
from the perspective of the customer whi us using their product or service
what is interpreneurship? - CORRECT ANSWER -intergenerational entrepeneurial
activity driven by new products, product line extensions, new markets for existing
products, exports, joint venture, private equity and partnership investments in new
venture, etc
why is interpreneurship important? - CORRECT ANSWER -because in the absence of
interpreneurship and growth, we have an "entrepreneurial death echo"; death at 25.
, Only 33% survive in the same family beyond the fist generation and only 12-15%
survive the third
what are the 5 steps to interpreneurship? - CORRECT ANSWER -1. develop the vision,
the dream, on the board and in family meetings or family council
2. next generation member as strategic planning quarterback
3. the business plan
4. next generation member as president of new venture or general manager or a new
region; a job that allows for the feedback from a profit and loss statement
5. family bank or family venture capital company
what does the architecture of interpreneurship consist of? - CORRECT ANSWER --
family council or family meetings with a mission
-the business plan
-the family bank of venture capital company
what is the venture's business plan? - CORRECT ANSWER --what is the market
opportunity - the revenue model
-who is the venture team
-what is the industry and competitive dynamic
-how is the offering different and defensible
-what is the operations and organization plan
-what is the financial pro-forma for the first 3 years and what is the financing
-what will the owners get in exchange for funding the venture
-what is the owner's opportunity - the business model
what does the venture review board consist of? - CORRECT ANSWER --3-5 people
(odd number better)
-2-4 people that know the industry and competitors and/or key disciplines like
marketing, finance, technology, etc
-1 or 2 members of the family to make sure that the family's interests, the family strategy
is well represented in the deliberations
-recommendation to the family council or family office or board to fund the new venture,
or not and under what terms
what is strategy making guided by? - CORRECT ANSWER -the owner's vision for the
future and a legacy derived from the firm's competencies, both of which insulate the
process from chaos and loss of control
what is a family-business owner's favorite target of procrastination? - CORRECT
ANSWER -estate planning
what are some reasons owners avoid estate planning? - CORRECT ANSWER --time
pressures
-the cost of professional advisors
-aversion to insurance products and agents
ANSWER -1. The threat of new entrants
2. The bargaining power of buyers
3. The threat of substitute products
4. The bargaining power of suppliers
5. The rivalry that exists among existing firms
What does strategic planning require? - CORRECT ANSWER --a new level of
communication among family members, between the family and management, and
between management and the board
-ample financial and market information
-building on the diffrerent persepectives and the predictable disagreemens across
generations
when does a zer-sum dynamic exist within a family? - CORRECT ANSWER -when
there is no business growth
what are the effects of a zero-sum dynamic? - CORRECT ANSWER --when the pie is
not getting larger, family shareholders fight over size of their slices
-the zero-sum dynamic is a precursor to business failure and family disharmony
what are the sources of value? - CORRECT ANSWER --financial resources
-physical assets
-the product and its price and performance
-organizational capabilities
-customer-supplier integration
-brand equity
-the family-business relationship
are financial resources likely to be a source of value for a unique business model? -
CORRECT ANSWER -no
why are organizational capabilities important? - CORRECT ANSWER -companies with
unique organizational capabilities are capable of differentiating themselves and creating
value in ways that others find difficult to replicate
what matters to a customer-oriented company? - CORRECT ANSWER -the outcome
from the perspective of the customer whi us using their product or service
what is interpreneurship? - CORRECT ANSWER -intergenerational entrepeneurial
activity driven by new products, product line extensions, new markets for existing
products, exports, joint venture, private equity and partnership investments in new
venture, etc
why is interpreneurship important? - CORRECT ANSWER -because in the absence of
interpreneurship and growth, we have an "entrepreneurial death echo"; death at 25.
, Only 33% survive in the same family beyond the fist generation and only 12-15%
survive the third
what are the 5 steps to interpreneurship? - CORRECT ANSWER -1. develop the vision,
the dream, on the board and in family meetings or family council
2. next generation member as strategic planning quarterback
3. the business plan
4. next generation member as president of new venture or general manager or a new
region; a job that allows for the feedback from a profit and loss statement
5. family bank or family venture capital company
what does the architecture of interpreneurship consist of? - CORRECT ANSWER --
family council or family meetings with a mission
-the business plan
-the family bank of venture capital company
what is the venture's business plan? - CORRECT ANSWER --what is the market
opportunity - the revenue model
-who is the venture team
-what is the industry and competitive dynamic
-how is the offering different and defensible
-what is the operations and organization plan
-what is the financial pro-forma for the first 3 years and what is the financing
-what will the owners get in exchange for funding the venture
-what is the owner's opportunity - the business model
what does the venture review board consist of? - CORRECT ANSWER --3-5 people
(odd number better)
-2-4 people that know the industry and competitors and/or key disciplines like
marketing, finance, technology, etc
-1 or 2 members of the family to make sure that the family's interests, the family strategy
is well represented in the deliberations
-recommendation to the family council or family office or board to fund the new venture,
or not and under what terms
what is strategy making guided by? - CORRECT ANSWER -the owner's vision for the
future and a legacy derived from the firm's competencies, both of which insulate the
process from chaos and loss of control
what is a family-business owner's favorite target of procrastination? - CORRECT
ANSWER -estate planning
what are some reasons owners avoid estate planning? - CORRECT ANSWER --time
pressures
-the cost of professional advisors
-aversion to insurance products and agents
